India's second-largest information technology company Infosys has significantly reduced its reliance on H1-B visas, as over 60 percent of its workforce in the US are now locals.
"Our dependence on H1-B visas has reduced significantly. First and foremost, our on-site mix has reduced significantly. We used to be in the 30% range; we are now at 24%," Infosys' Chief Financial Officer Jayesh Sanghrajka said while addressing the press after declaring the third quarter results ending December 31, 2024 (Q3FY25).
For Q3, Infosys offshore employees made up 76 percent of the workforce while the rest were onsite.
These comments by the Infosys management assume significance as there’s a raging discussion on how the new US administration, led by incoming President Donald Trump, might treat the H-1B visa eligibility issue.
Trump will be sworn in on January 20 as President of the country that generates the majority of revenue for IT companies.
The comments of Infosys are in line with what some of its industry peers, TCS, HCLTech, and L&T Tech Services have said recently.
"On any given year, we get about between 3,000 to 4,000 H-1B visas. In our overall scheme of things, it's a small number. If there is a decrease in H-1B, we can compensate with other means, or we can move the work to India. So our dependence on H-1B is not very high," TCS CEO Krithivasan told Moneycontrol.
Also, read: India monitors H-1B backlash in US, in touch with top IT firms for more clarity
Jayesh added that the Bengaluru-based company has now built a resilient model, and therefore, it is much more confident from where Infosys was earlier.
The IT services exporter also remains optimistic about the US market, which is its largest geography in terms of revenue.
Chief Executive Officer Salil Parekh highlighted the strong performance of the US economy in recent quarters and its effective management post-COVID-19. "And everything we see in terms of what the outlook is, especially with what we saw on the inflation and the interest rates, gives us a view that the US will remain a very good and strong market for us," Parekh added.
Meanwhile, the IT major's Q3FY25 net profit rose 11.4 percent year-on-year, beating Street estimates, to Rs 6,806 crore, from Rs 6,106 crore in the year-ago period. According to a Moneycontrol poll of nine brokerages, the IT major's Q3FY25 profit was pegged at Rs 6,734 crore and revenue at Rs 41,206 crore.
Infosys revenue from operations rose 7.5 percent to Rs 41,764 crore in Q3FY25 as compared to Rs 38,821 crore in Q3FY24.
Also, read: Infosys adds 2,456 employees in Q2, reverses trend of past six quarters
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